Retired first responders face bills after company illegally sold insurance plans

PHOENIX — Thin Blue Line Benefits Association said its mission was to serve retired police, firefighters and their families. It promised to provide “gap coverage” for retirees too young to qualify for Medicare. 

Its members thought they were buying health insurance. They paid monthly premiums, had established deductibles and even had a member benefits card. 

But on paper, Thin Blue Line said it wasn’t an insurance company. Instead, it said it was a Health Benefits Association not subject to state insurance regulations. 

MORE INFORMATION: Thin Blue Line Benefits Association must immediately stop operations in Arizona

“That’s not what I signed up for,” said retired Paradise Valley police sergeant Don Blume. 

Blume worked for the Paradise Valley Police Department for more than 20 years, but he wasn’t yet 65 years old when he retired. That made him, like most first responders, too young to qualify for Medicare. 

He said he joined Thin Blue Line in 2023. 

“I thought I was signing up for regular Cigna insurance coverage, and we had good deductibles, the premiums were less than what the state offered, and looked like it was good coverage,” Blume told the 12News I-Team.

“They started off awesome, until October of last year, when things started falling apart.” 

When Blume signed up, Thin Blue Line did have an agreement with Cigna and another company called Quilt Benefits. That changed in December 2024, when Quilt and Cigna cut ties. In a letter to members, Quilt said it was separating from Thin Blue Line due to a lack of funds to pay claims. 

All the while, members started noticing more and more of their medical bills weren’t being paid. 

“I’ve been fighting off collections for quite a while,” said Tom Himmes, retired Phoenix Fire Captain. Himmes shared screenshots of unpaid claims with the I-Team, including one that was more than 2 years old. 

Altogether, Himmes said the unpaid medical bills reach about $20,000 for him. 

Blume said his unpaid claims are even higher. 

“We had the surgery, and then I looked last night and it popped up on the bill,” Blume said. “They say I owe $89,470.” 

That total included surgery costs and appointments, Blume said. 

These two are far from alone. 

An investigation from the Arizona Department of Insurance and Financial Institutions found Thin Blue Line had more than 4,600 members and had collected $5.9 million since the start of this year. 

It’s unclear how many claims remain unpaid. 

Thin Blue Line CEO Anna Reed and her attorneys have not responded to multiple requests for comment and ignored questions about the unpaid claims.  

“You want to talk about a group of people that doesn’t take kindly to that, you found them,” Himmes said. 

On July 16, DIFI issued a cease-and-desist order, demanding Thin Blue Line stop operations in Arizona and return “unearned premiums.”

That decision comes as a relief to members who were hopeful for action – but leaves thousands of Arizona’s retired first responders without adequate health care coverage. 

“I hope the people that have huge, outstanding, unpaid medical bills get taken care of, especially the people that have chronic issues,” Himmes said. “When are they going to be paid? How are they going to be paid?”

Blume said he’s turned to the Arizona Attorney General’s office for answers, filing a complaint after learning of the cease and desist order. 

Other members have shared that they’re hopeful they will be able to sign up for a plan through the Health Insurance Marketplace before open enrollment.

You can check your eligibility by going to Healthcare.gov.

The Health Insurance Marketplace does allow for some people to get health insurance coverage outside of open enrollment, called special enrollment opportunities. These include major life events, including the sudden loss of coverage, if an individual plan “no longer exists.”

“I’ll have no problem finding another insurance carrier, yeah, but it’ll be an insurance carrier that’s certified in Arizona and is playing by the rules,” Himmes said. Adding, he knows first responders will help one another too. 

“We’re a tight knit group. We’re in this together, and that support has helped,” Himmes said. 

Here’s how to contact the Arizona Department of Insurance and Financial Institutions: 

Healthcare Email: [email protected]

How to contact the Arizona Attorney General’s Office: 

You can find best practices and a checklist for filing a consumer complaint with the AZAG’s office here

Contact: (602) 542-5763 (Phoenix) 

Email: [email protected]